Identifying your customers is the number-one way to streamline your advertising. By knowing who your best and most f requent customers are, where to find them, and how to attract them, you can maximize your advertising dollar.
Demographics With today’s technology, it has become easier than ever to target certain demographics. Also, demographics as applied to advertising are no longer limited to age, gender, and income range. Some research companies can give you population breakdowns based on hobbies, types of pets, and even people’s weights! Companies of all sizes can benefit from using demographics, as similar people tend to make similar buying decisions. For example, women over the age of 50 living in a house worth more than $500,000 will likely make the same kinds of purchases when you look at them as a large group. And men under the age of 25 living in apartments would have a completely different set of buying habits from the aforementioned women over 50. When you are able to identify your customer base, this data can serve a much more useful purpose. You can use demographic data as a tool when choosing mediums in which to advertise. It may turn out that your targeted demographic reads a certain section of the newspaper, or maybe they have a very specific cable station they’re loyal to. It’s important to truly pay attention to your m arket and not make assumptions about what customers you want to attract. Breaking down demographics will do nothing for you unless you properly identify your customers.
Typical versus Prime It is important to differentiate between your typical and prime customers. These classifications are not in regard to customers’ demographics; rather, they deal with the type of business customers conduct with you. Typical customers make the most frequent purchases or transactions with you. For a mechanic, typical customers might be those who need brake jobs. For a florist, typical customers might be those who order a dozen roses. Prime customers are usually less frequent, but they’re the ones you love to see walking through the door or calling you on the phone. That same mechanic might prefer prime customers b uying brand-new transmissions, while the florist is waiting for that bride-to-be. Sometimes, your typical customers can become prime customers. It’s important to bring in and satisfy your typical customers so that when they’re ready to make a larger buying decision (thus becoming a prime customer), they will come to you once again. One of the biggest mistakes an advertiser can make is “elephant hunting.” If you’re a new real-estate agent, and you claim to be the expert in selling multimillion-dollar homes, but you’re not addressing your most frequent type of customers, you’re going to miss a lot of opportunity. If your ad in a local magazine shows a stock photo of a $10 million home, you may not get a call from the family trying to sell their ranch home on the other side of town. A better idea is to have a quick blurb about servicing all ranges of clients, but focusing your ad on service and things that get you more calls. After selling 10 average homes, not only will you have made some money, but maybe you will also have built a positive relationship with someone who’s aunt is looking to sell her million-dollar home.
Tracking Your Customer Base Regardless of whether you’re dealing with typical or prime customers, it’s important to get to know your customers. Identifying similar traits in clients you like (or dislike) can help you reach s imilar people in your local market. For example, if you are a f urniture dealer, you might prefer clients who purchase complete sets as opposed to individual pieces. You may spend a goodamount of money sending direct mail to the most affluent neighborhood in your town, assuming that those customers are most likely to purchase furniture sets instead of individual pieces. However, by tracking your customers’ ZIP codes and buying habits, you might find that a middle-class neighborhood on the other side of town sends the real big-ticket shoppers through your doors. Or, maybe you’ll find that seniors purchase the most furniture sets, or families with three or more children, and so on. As you begin to paint a picture of the demographics you prefer, you can start targeting your customers more effectively. If you’re an optometrist, it may turn out that seniors are your best clients. Because their demographic still tends to heavily favor the Yellow Pages, a sharp ad (with large print) in your local directory might be a good idea. You might also like getting first-time eyeglasswearers through the door, so an effective social-marketing tool with local doctors may get you the new referrals you need. Be sure to have a profile with any of these mainstream sites for social p urposes, but don’t be afraid to use it to link up with your t argeted audience. Making these moves based on your customer demographic will save you money over canvassing the entire population. Overmarketing a population can weaken your advertising dollar if only a certain percentage of people will be doing business with you. Creating a tracking system for your customers will help you build a customer profile while also tracking your individual advertising results. If your information is thorough enough, you can also build mailing lists from it. Don’t be afraid to get as much information from your customers as they will comfortably give up! Addresses, email addresses, phone numbers, age, gender, occupation, family members, home ownership, and feedback are all things you should keep track of. You don’t have to obtain all these bits of detail on a customer query form. Casually ask about the person’s occupation and f amily members if the conversation allows. You can also obtain some of this information (address, phone number, email address) by using your order forms or online questionnaires. (Taken from Mark Hoxie Book)